International Advanced Economics

If interest rate is higher than growth rate, than

primary surpluses are necessary to ensure debt sustainability

If in a country the private savings (as a relation to GDP) are equal to 23% investments (private, as a share of GDP) are equal to 25%, and the budget surplus (T-G) is equal to 3% of GDP, the relation of the current account balance to GDP will be equal to

+1% GDP (maybe)

Which of the following variables is treated as a “predetermined” variable in the analysed model?

Public debt (B)

Which of the following cases of assets is estimated to have globally the largest value?

Equity (shares)

Among the following Central and Eastern European countries the most floating exchange rate arrangement is applied by

Bulgaria

Total wealth of domestic residents is equal to

Net international investment position

An example of price-based approach to study financial market integration is

Studying the links between the variances of bond market returns with the use of DCC (Dynamic Conditional Correlation) or GARCH models

Currency board is

A version of a fixed exchange rate system

If in a sector with monopolistic competition one of the producers sells their products at lower prices than the average of their competitors’ then

It is expected to have a higher than average market share

Which of the following descriptions fits best to the country which should apply a fixed exchange rate arrangement?

A small open economy with flexible labour market

BIG Mac parity or Starbucks’s latte parity are special cases of

Absolute purchasing power parity

If the currency of a country depreciates and its inflation is lower than in the partner countries, then its real exchange rate

Depreciates

Gross national income (GNI) is greater than Gross national product (GNP)

If the balance on secondary income is positive

Balassy-Samuelson effect suggests, that in the “catching-up” countries we should notice the following trend:

Real exchange rate appreciation

Complex global value chains occur if

Intermediate goods cross border at least twice

Among five currencies generating the larges turnover on the forex market one may find:

EUR, JPY, GBP

Internal economies of scale are related to a situation, where

The average cost decreases with the size of the firm (its quantity of production)

Which of the following relation can be presented as a horizontal straight line?

AA under permanent shocks

If in a country the balance on primary income and the balance on secondary income are negative, then:

GDP > GNP > GNI

Which of the following relations can be presented as a vertical straight line?

UIP under fixed exchange rates

Which of the following variables is not a policy variable

Export (X)

VAX ratios are usually the lowest in

Manufacturing

Which of the following sectors (entities) is assumed to have negative net wealth in the analysed model?

Government

Which of the following sectors is not explicitly included in the analysed model

Banking sector

External economies of scale are related to a situation, where

The average cost decreases with the size of the industry

Which types of transaction generate the largest turnover on the forex markets?

Spot and swap

Among the following Central and Eastern European countries the most rigid (least flexible) exchange rate arrangement is applied by

Poland

Which of the following exchange rate arrangements is applied by the largest number of countries?

Conventional fixed exchange rate arrangement

If in a country the private savings (as a relation to GDP) are equal to 25% investments (private, as a share of GDP) are equal to 23%, and the budget surplus (T-G) is equal to 3% of GDP, the relation of the current account balance to GDP will be equal to

+5 % GDP

If in a sector with monopolistic competition one of the producers sells their products at higher prices than the average of their competitors’ then

It is expected to have a smaller than average market share